Foreman in Fatal NYC Trench Collapse Gets Jail Sentence
December 21, 2016 —
Mary B. Powers – Engineering News-RecordWilmer Cueva, a construction foreman for Queens, N.Y.-based excavation subcontractor Sky Materials, was sentenced on Dec. 15 to up to three years in prison for causing the death of 22-year-old worker Carlos Moncayo, and endangering other workers at a lower Manhattan retail project site. Manhattan District Attorney Cyrus Vance said the workers were in an unprotected 13-ft trench that collapsed in 2015.
Read the court decisionRead the full story...Reprinted courtesy of
Mary B. Powers, Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Iowa Court Holds Defective Work Performed by Insured's Subcontractor Constitutes an "Occurrence"
July 28, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Iowa Supreme Court held that property damage caused by a subcontractor's defective work was an "occurrence." Nat'l Sur. Corp. v. Westlake Invs., LLC, 2016 Iowa LEXIS 71 (Iowa June 10, 2016).
In 2002, the insureds, the developers and general contractor, began construction on an apartment complex. While the complex was still under construction, it was purchased by Westlake Investments, LLC.
During construction, numerous problems surfaced, including visible water penetration issues in several buildings. In February 2008, Westlake sued the insureds, seeking to recover lost profits, repair costs, and other damages under tort and contract theories. Arch Insurance Group defended under the primary policy. A settlement was eventually reached whereby a consent judgment for $15,600,000 was entered against the insureds and in favor of Westlake. Arch contributed its policy limits of $1,000,000 to the settlement. Other third party defendants contributed $1,737,500, leaving $12,762,500 of the judgment unsatisfied. The insureds assigned rights under their excess policy with National Surety Corporation (NSC) to Westlake. NSC's policy was a following-form policy.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Federal District Court Addresses Material Misrepresentation in First Party Property Damage Claim
August 26, 2024 —
James M. Eastham - Traub LiebermanIn Pittsfield Dev. LLC v. Travelers Indem. Co., 2024 U.S. Dist. LEXIS 117530 (N.D. Ill. July 3, 2024), the United States District Court for the Northern District of Illinois addressed an alleged material misrepresentation by an insured during the course of the adjustment of a water loss claim at an insured property. Subsequent to a pipe burst event which caused damage to a number of the floors in the insured building, the insured submitted a claim to Travelers and also submitted, with the assistance of a retained public adjuster, a damage estimate of the damages at the property. Included within the estimate submitted by the insured was a line item for "Lead Paint & Asbestos Removal" with a corresponding dollar amount of $1,140,000. It was this line item which formed the basis of Travelers' claim of misrepresentation.
At his deposition, the public adjuster testified that the $1,140,000 figure was an oral estimate received over the phone from an asbestos remediation company. Travelers disputed the testimony and contended that no such estimate was ever provided. For support, Travelers pointed to deposition testimony from a remediation company employee that while rough estimates were occasionally given verbally, the largest over the phone estimate she could recall was in the $20,000-$25,000 range. It was also disputed that the company would ever provide an oral quote of that magnitude sight unseen, especially since the largest project the remediation company had ever completed was less than $250,000.
Read the court decisionRead the full story...Reprinted courtesy of
James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Home Construction Thriving in Lubbock
December 30, 2013 —
CDJ STAFFThe 2013 numbers for home construction aren’t ready yet, but the January through November numbers for Lubbock, Texas show a 42% increase over the number of construction permits issued for single-family homes in the first 11 months of 2012. The number look even better compared to 2011’s totals, according to KFYO.
Read the court decisionRead the full story...Reprinted courtesy of
Massive Fire Destroys Building, Firefighters Rescue Construction Worker
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFA “5-alarm fire burned down a residential building under construction in the Montrose area” of Houston, Texas, reported Click 2 Houston. Almost 200 emergency personnel were on the scene.
Captain Ruy Lozano told Click 2 Houston that “firefighters worked to contain the blaze, before the imminent collapse because the fire suppression systems were not yet in place for the under-construction building.”
ABC News reported that fire fighters rescued Curtis Reissig, a construction worker from the fire. “It’s burning my eyes, my throat. I can’t breathe and I can’t hardly see anything,” Reissig told ABC News. “I could see a window. I went to that window. Trying to open that window in a panic. I couldn’t get the thing open. Smoke was getting heavier, just trying to get some air.”
ABC News reported that Reissig jumped down from a fifth story balcony to a ledge below, where “firefighters pulled him to safety.”
Read the full story at Click 2 Houston...
Read the full story at ABC News... Read the court decisionRead the full story...Reprinted courtesy of
Addressing Safety on the Construction Site
January 27, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Construction Law Musings Guest Post, we welcome a new face, Patrick Rafferty. Patrick (@ThePraff) is a consultant for Brahman Systems and has an interest in construction safety.
First of all, I’d like to say that I am not an attorney. Anything I say in this article should be taken with a grain of salt. All of the information that I have written in this article comes from personal work experience on the worksite.
Each year, construction sites around the nation see hundreds of thousands of injuries related to equipment operation and situations that could be avoidable with the right precautions in place. In 2011 alone, according to the Occupational Safety and Health Administration, there were 4,069 workers killed on a construction site, most of which were avoidable. Though some sort of on-site problems are unavoidable, they can be minimized with simple practices that every construction site should have in place, whether it is the building of a high-rise building or a simple house renovation.
Here are some of the most common issues that lead to injuries on the construction site:
Lack of training
Before anyone steps onto a construction site, they need to have a thorough understanding of not only what they will be doing, but also how to use the equipment involved in the building process. All operators of heavy machinery should have verifiable training on the machine or equipment they will operate. Most equipment dealers offer training as part of their customer service, such as usage manuals, videos and quizzes. Once these are complete, many will offer a certificate of completion at the end of the process. The larger and more complex the machine, the more time should be allotted for training.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurers Dispute Sharing of Defense in Construction Defect Case
May 13, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024).
Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a "Subcontract Agreement" under which Broadway was to perform plumbing work at the project. The agreement required Broadway to maintain general liability insurance naming McNerney as an additional insured for work performed on the project, including completed operations. The subcontract also required Broadway to indemnify and hold McNerney harmless with respect to all claims for damage to property arising out of work performed by Broadway.
Broadway completed its work on the project in September 2007. Broadway issued a one-year warranty for its work on the project.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Montana Supreme Court Tackles Decade-Old Coverage Dispute Concerning Asbestos Mineworker Claims
December 20, 2021 —
Patricia B. Santelle & Paul A. Briganti - White and WilliamsOn November 23, 2021, the Montana Supreme Court issued an almost unanimous decision in National Indemnity Company v. State of Montana, a ten-year-old coverage dispute arising from claims against the State of Montana alleging it had failed to warn of asbestos dust conditions at vermiculite mining and milling operations in and around Libby, Montana (the Libby Mine) run by W.R. Grace & Company and its predecessors. Affirming in part and reversing in part rulings by the trial court that culminated in a $98 million judgment against the State’s CGL insurer from 1973 to 1975, the court addressed issues including the duty to defend/estoppel, the number of occurrences, “trigger of coverage,” and, in a case of first impression, allocation under Montana law.
Whether the Insurer Breached the Duty to Defend Depended Upon the Timeframe
The court looked at whether (1) the insured provided sufficient information to bring the claims within the possibility of coverage under the subject policy and (2) the insurer gave “the necessary substance to” fulfilling its duty to defend at four points in the relevant timeframe:
- The insurer did not breach its duty at the time the State initially tendered the Libby Mine claims because the State defended the claims through its self-insurance program, hired its own counsel, managed the litigation, made its own defense decisions, and took the position with the insurer that the matter was “under control” and “nothing was left to be done[.]”
Reprinted courtesy of
Patricia B. Santelle, White and Williams and
Paul A. Briganti, White and Williams
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of